Loaning Kindle to Patrons a No-No for Libraries?

(Update 2/8/08: Amazon says that the Kindle can be loaned as long as it doesn't have any books on it.)

(Update 1/28/08  5:20 pm: Someone left a comment saying that they had checked with Amazon and gotten a very different response than the one I got from customer service.  Amazon!? Yeah, you! How about some clarification? Please read the comments, as some of them add to the discussion.)

(Update 1/30 10:50 am: I've submitted a request through Amazon Media Relations to get a definitive answer about Kindle, and to ask about any plans to work with libraries.)

(Update 1/31/08 8:38 am: Here is an earlier post, at LibraryLaw Blog, questioning what Kindle ToS meant for libraries.)

I've been reviewing the library's Kindle since it was placed in my hands last week. Most of the review has focused on the machine itself--features and usability. But today, I had some questions about the service itself, so I called the Kindle support line at Amazon and thought that this warranted a separate post.

Right around the time Kindle was released, I read the Terms of Service, curious to see if or how Kindle readers could be used in public libraries. My interpretation of the TOS said "NO,"

You may not sell, rent, lease, distribute, broadcast, sublicense or otherwise assign any rights to the Digital Content or any portion of it to any third party

Shortly after the Kindle came out, I saw a few posts about libraries that were loaning the Kindle to patrons. I've been waiting for follow-up posts saying that Amazon had come down on those libraries for violating the ToS, but haven't seen anything. 

This past weekend, I took our library's new Kindle home to test drive it, and found that it was very easy to add new content, via Amazon's 1-click order service.  When I got to work this morning, my phone was ringing--it was our business manager asking if I had made purchases for the Kindle.  When I said yes, she wondered how I was able to do it. Her assumption was that anyone else who played with the Kindle would have to enter Amazon/Kindle account information (email and password) to download new material. This made me further wonder how the libraries loaning it were able to keep borrowers from downloading stuff, so I called Kindle support.

I only had to wait a few seconds to get to a live person, and was immediately asked for my email address. Since I have an account with Amazon, my address was verified.  I was then asked to answer my security questions before getting help with the Kindle presumably registered to me.  At that point I interjected that I did not have a Kindle, but was reviewing one that was owned by my library and just had some basic questions.   The support person was more than happy to take my general questions.

I explained that the library where I worked ordered one just to play around with, but that we had no plans to let patrons check it out, as I understood the ToS prohibited that sort of "distribution." When I asked for a definite answer, he verified that libraries who loaned the Kindle were violating the ToS.

That response more or less explained my second question, which was about how easy it was to download content.  Since the Kindle is, legally, only supposed to be used by one user, the ordering/content-getting process was made as easy as possible. The support guy indicated that there was a way to prevent others from downloading, but I think it entails disabling your payment method in your Amazon account, which also prevents the owner from downloading content.  My question is, what if you buy a Kindle and share it with your kids, but don't want them downloading stuff to the machine?  It seems that there should be an easier way to be able to lock and unlock this feature.  Or, does Amazon literally expect customers to adhere to their non-transferable ToS, even within a cohabiting family?  Are we, as a library, in violation of the ToS, even though we're not loaning to patrons, but sharing the machine for educational purposes?  Can we demo it to patrons at the desk or at library outreach events?

The questions I really wanted to ask, and which probably would not have received straight answers are: How hardcore will Amazon be about ToS violators?  Will public libraries be getting cease and desist letters?  Or is it more of a don't ask/don't tell deal? It's kind of hard to fly under the radar when you are applauded for innovation in Library Journal. If you have seen any stories about public libraries getting a smackdown from Amazon, please send along!  (updated 1/29) Or, if you are in a library that circulates Kindles, please let us know how it's going and whether or not you had/have concerns about being able to circulate the machines.

Bottom line: The Kindle has no application for public libraries. (updated 1/29) Jury is out on whether Kindle can be circulated by libraries.

Comments

[Buyer of Structured Settlements]

Wow! Kindle is a great idea.

[fifi]

No, this is incorrect. You can can loan a Kindle with content. Amazon suggests you disable your ability ordering so patrons do not order books and charge your account. You could re-enable ordering so you can add more to the device.

[rochelle]

Hi Brian and other commenters who doubted my interp. Thanks for commenting, but we have a final verdict from Amazon. They are fine with loaning a Kindle that's been disabled and has no content. I'm doubtful that Amazon will go after the handful of libraries that are loaning it, but wonder what their response would be if lots of libraries started to loan?

[Brian]

There is a simple way to stop a patron from ordering titles when they have the device: all you have to do is go to your corporate amazon.com account and disable the 1-click ordering and then you can't order from the kindle.

[Yuri]

Guys, could you, please, comment on how the library handles lending of that expensive device? Do you collect patron's credit card info to be covered in case the device is lost/damaged/stolen?

What if patron actually bought extra content to the library's device -- will you charge his/her credit card for the full cost? What about the cost of loaded content? Is he informed about the value he's taking with him and responsible for? Or -- will you just show him balance due when he logged into the library site, and stop giving anything out after the balance is higher than some predefined limit, and wait-and-wait-and-wait till he pays it off?

Is there an age limit for patrons who could take the Kindle home?

For how long do you (or going to) lend it? It might (and most likely will) be more than one book loaded into device -- so regular for paper books (a month?) period might be not enough to read as much as patron might want to.

Do you really think it's OK to charge the entire amount of the book he bought if at the end he won't own it? Do you just consider it a form of donation to the library?

[Rocco]

I just don't see how lending a Kindle to a patron is a form of renting, leasing, distributing, broadcasting, or sublicensing the digital content stored on it. Only one user at a time can access the purchased content and you haven't made copies, that's all Amazon cares about.

[Will]

It seems most likely that the rep Rochelle spoke to was just wrong. It's a new product, s/he's a front-line CS rep, it's a weird question--it happens.
They cannot tell you who you can lend discrete items to for free; they just don't want you circumventing their business model by renting Kindles for money, selling copies of their ebooks, etc.
Plus, going after libraries for providing a new service wouldn't exactly be great PR for Amazon or for the Kindle product.
If I understand correctly, the Sparta Library (the one mentioned in LJ) allows patrons to add 1 new title to the Kindle during the circ period at the library's expense. Beyond that, they charge the patrons the reimbursement cost of the additional materials. That hardly amounts to selling, renting, leasing, broadcasting, distributing, sublicensing, or otherwise assigning any digital rights.

[Kelly]

It seems from the reply Jenn got, that once you load up a Kindle to lend, you cannot add any more titles. They suggested unregistering the device so that patrons cannot order more downloads. That answers Rochelle's question about how you can prevent your patrons or kids from downloading content. However, if you follow this method you will have to buy multiple Kindles. When new titles come out, you won't be able to download them to your (now unregistered) device. You will have to buy another Kindle -- pretty sweet deal for Amazon! Does anyone know if you can 're-register' a unregistered Kindle?

[rochelle]

Thanks much, Jenn, for sharing your experience. I'm pretty sure that I called the same number you have listed. Let's hope Amazon clarifies this!

[jennpb]

I ran this past our Readers Services manager today, and she has also been in touch with Amazon. She got different info:

"Greetings from Amazon.com

Thank you for contacting Amazon.com Kindle. We appreciate your interest in using the Amazon Kindle in your Library.

We have reviewed through our Terms and Conditions regarding this matter and the Amazon Kindle. You will be able to purchase Kindles for your library to use for checking out to patrons, as long as you are not reselling the digital content.

One thing we recommend however is that once you have transfered your content that you unregister the device through the settings menu on the Kindle. This is because once the device is registered you may make purchases to the default card on the account with out having to log in, and thus preventing a patron from making an accidental purchase on your account.

Unfortunately at this time, we do not offer a method of ordering Kindle in bulk at a discounted price. I do apologize for any inconvenience this may cause.

I have included below information regarding the Terms and Conditions of the Amazon Kindle that is available on our website.

http://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200144520

If you have any more questions regarding the Kindle and settings up a Kindle account, it may be easier to provide better service for your questions over the phone. You can reach us by phone directly by calling 1-866-321-8851.

Thank you again for your interest in Amazon.com Kindle.-"

I wonder why the discrepancy?

[walt crawford]

Thanks. This provides important--and verified--information to librarians considering use of Kindles.

[Colleen]

Interesting. Don't libraries still have to pay to get material onto the Kindle? So technically, patrons would only have access to those titles purchased by the library...just like in print or audio books. Harrumph, I say.

[Julian]

Might the same rules apply to libraries that allow patrons to check out Wiis (if you can find a system) with games downloaded to them? Different device, slightly different content purchasing model, different company... but same ToS premise?